frictions that allows us to distinguish between different sources of risk and to estimate their effects. The sources of risk are … heterogeneity. Our model allows for four main social insurance programmes. In contrast to simpler models that attribute all income …. Estimates of productivity risk, once we control for employment risk and for individual labour supply choices, are substantially …

different from an hours constraint. Income and wage elasticities are estimated for workers without hours constraints using data … from the May 1991 supplement to the Current Population Survey. Our study finds that the income and compensated wage …

elasticities derived from microeconometric models can also be explained by modeling assumptions with respect to wages. Specifically … very sensitive to the treatment of wages. In particular, the often-made but highly restrictive independence assumption … between preferences and wages is key. To overcome this restriction, we propose a flexible estimation strategy that nests …

We study the effect of lower unearned income on labor supply. To identify the causal effect of an unexpected reduction … in unearned income, we exploit a policy reform that lowered survivor pensions in Austria. Men widowed after the survivor … to a labor supply elasticity at the extensive margin with respect to the changes in total income of about -0.9 to -1.3 …

We develop a new approach to the decomposition of income risk within a nonstationary model of intertemporal choice. The … approach allows for changes in income risk over the life-cycle and with the business cycle. It requires only repeated cross … decomposing income risk. The approach is used to investigate the changes in income risk in Britain across the inequality growth …

consumption-saving model with labor income risk and incomplete markets to relate income dynamics to consumption and welfare, and …) welfare-neutral. A smaller part of measured income mobility is due to either welfare-reducing income risk or welfare …This paper develops a framework for the quantitative analysis of individual income dynamics, mobility and welfare …